Gold calculators are a significant phenomenon for investors in the gold market as opposed to regular stock investment. However, before we get into a definition and description of a gold calculator, we first need to get into the ins and outs of the gold trading and investment market.
What do we Know About the Gold Market?
Intelligent investors all over the globe are looking to invest in the gold market. One of the main reason is that it offers high liquidity and a myriad of excellent opportunities for profit-making. The gold market is also profitable in almost all kinds of environments because of its unique positioning within the economic and political systems worldwide.
Participants in the market can either choose to own the metal itself or speculate through futures, equities, and options markets. These aspects offer excellent leverages with measured risks. Physical gold trading is also a widespread phenomenon in the industry.
The Concept of Gold Trading
When most people hear of the term trading, they assume that they have to own the commodity in question physically. However, in gold trading, it is possible to make profits without having to hold the metal physically.
Only possible by trading Gold through CFDs. Working in such a way that you can open a temporary order to either sell or buy a precise amount of Gold. Profits and losses, therefore, gets based on the change in prices of the commodity during the period of contract duration.
You can also trade different forms of Gold including;
- The physical metal: this refers to a bulk of precious metals typically measured in the way of a bar or a weight.
- God Certificates: these certificates act as a proof of ownership issued by banks and represent several gold bullions or coins to he that owns the documents.
- Gold Futures: this is a contract agreement for the delivery of Gold in the future at a price agreed upon at the time of the contract.
- EFTs: gold-related Exchange Traded Funds give investors the potential to earn more in the sector as compared to trading alone.
Determining the Price of Gold in Gold Trading
The quantity of the commodity directly affects its price. Like forex calculators, calculators for Gold are used to find the cost of the product per gram.
Gold calculators per gram, help to value gold coins, jewellery of all kinds, and other items that are made of solid Gold depending on the current price of Gold. Several gold calculator apps (also known as gold calculator watch)in the market perform the task.
How do Gold Calculators Work?
- These applications and tools import the prices of Gold from a variety of stocks in different states, cities, and countries. By doing so, they feature the latest and most accurate price.
- Various tools offer varying guidelines for using the app or tool. However, using the tools is pretty effortless, and the formula is almost the same in each tool.
- All you need to do when using a gold calculator is know the weight (in grams) and the purity of the Gold or the item made of Gold.
- You can find the weight of your commodity using a scale that you have to purchase independently. You must know the weight of your Gold as it keeps you from selling for less to fraudsters and greedy dealers.
- Once you weight your product, you can enter it in the calculator. The tool then finds its value per gram.
- In some cases, you may also need to select the level of purity of the item and the type of thing (like jewellery or coin) before determining the value.
Calculators Specifically Designed for 14K Gold
The tool can get used to figuring out the cost of items that are made from fourteen Karat Gold while excluding other elements used in their manufacture. It is, however, essential to note that the tool only calculates the intrinsic value of the Gold and not the collectable value of the gold item.
What is the Difference Between Lot Sizes and Position Sizing in Gold Trading?
A lot size is a term used in Forex trading. It refers to the quantity of an item ordered for delivery on a particular date. In gold trading, the max lox is the total quantity or maximum quantity. On the other hand, position size is measured in units using position sizing calculators.
Some of these tools for calculating the value of Gold can also get used for other metals like silver, platinum, and palladium.
In such a case, when using the tool, you may need to select the type of metal, select the purity using the provided levels as well as the type of item, select the weight, and find out its value.
Many are times with these tools for calculating the amount of Gold are also sites for selling and buying the products. In such cases, once you have found the value of your product, you can proceed to sell it.
However, this step is optional in all the apps, and users have the freedom to consider different sizes before deciding to sell.